Contractor All Risk Insurance UAE 2026

from 0.08% | Dubai Municipality Approved | TPL up to 100M

Project-specific policies covering physical damage and third-party liability during construction. Required by all major UAE developers and municipal authorities.

35+

Insurance Partners

1.5 M+

Trusted Customers

1.5 M+

Policies Sold

Proposal Details

2026 CAR EAR Rate Matrix

Indicative annual rates for project-specific insurance in the UAE. Final rates depend on contractor loss history, site location, and technical BOQ risk assessment.

Project Type	Contract Value (AED)	Rate (%)	Premium (AED)
Villa (low-rise)	3,000,000	0.08%	2,400
Townhouse cluster	15,000,000	0.10%	15,000
Commercial G+4	25,000,000	0.13%	32,500
Hotel G+20	200,000,000	0.15%	300,000
High-rise G+40	500,000,000	0.18%	900,000
MEP fit-out	20,000,000	0.12%	24,000
Infrastructure (roads)	80,000,000	0.15%	120,000
Oil & gas EAR	150,000,000	0.22%	330,000

*Premiums are for the full project duration (up to 24 months) + maintenance. Extension of period may incur additional pro-rata premium.

CAR vs Erection All Risk (EAR)

While CAR covers the building itself, EAR is tailored for installation of machinery and industrial plants. EPC contracts often combine elements of both.

Project Aspect	Contractors All Risk (CAR)	Erection All Risk (EAR)
Primary Use	Civil + building construction	Plant, machinery erection
Typical Clients	Real estate developers	Oil & gas, power, factories
Testing & Commissioning	Limited (typically 4 weeks)	Full (up to 12 weeks+)
Risk Focus	Natural perils & TPL	Technical failure during testing
Typical Rate	0.08% - 0.25%	0.15% - 0.40%

Project Protections & Exclusions

Policy Inclusions

Material Damage: Physical loss to works, plant & equipment.

Third-Party Liability (TPL) up to AED 100M+.

Maintenance & Defects Liability (12-24 months).

Delay in Start-Up (DSU) / Advance Loss of Profits.

Debris Removal (typically up to 10% of SI).

Professional Fees (Architects, Engineers).

Escalation Clause (10-25%) for project cost fluctuations.

Cross Liability between contractors & sub-contractors.

Surrounding Property of the principal developer.

Off-site Storage and Transit within UAE.

Hired-in Plant and machinery cover.

50/50 Marine/CAR interface clause.

Key Exclusions

Faulty design, materials, or workmanship (unless LEG2/3).

General wear, tear, and gradual deterioration.

Consequential loss (unless specific DSU extension).

Contractual penalties and Liquidated Damages (LDs).

War, nuclear risks, and radioactive contamination.

Cyber-attacks and associated data loss.

Asbestos-related liabilities.

Municipality & Developer Compliance

eSanad policies are stamped and accepted by all major UAE municipal authorities and master developers for NOC and building permit issuance.

Municipalities

Dubai Municipality (DM)

Abu Dhabi Municipality (ADM)

Trakhees (PCFC)

Dubai South / Expo City

Sharjah & Ajman Municipalities

Master Developers

Emaar Properties

Nakheel / Dubai Hub

Aldar (Abu Dhabi)

Meraas / Dubai Holding

DAMAC Properties

Authority Requirements

Minimum AED 5M TPL

Stamp & Policy Schedule

Additional Insured Status

Specific NOC Endorsements

CAR & EAR — FAQs

Yes—Dubai Municipality, ADM, Trakhees, and all free-zone master developers require CAR with minimum AED 5M TPL before issuing building permits.

Based on contract value × rate. Rates depend on project type, height, location (coastal/inland), and contractor experience.

Typically the main contractor buys the policy, naming the principal/developer and all sub-contractors as co-insureds.

DSU covers the developer’s loss of anticipated revenue if a physical damage claim delays project handover beyond the scheduled date.

A 12-24 month period after completion where the contractor remains liable for defects. This must be specificially included in the CAR cover.

Yes, automatically as co-insureds, provided they work on the declared project site.

Standard CAR excludes design defects. LEG2/LEG3 clauses can extend cover to consequential damage from defective design.

It's a standard exclusion but can be added via the 'Existing Property of Principal' extension for works near existing structures.

Notify eSanad immediately. A premium adjustment is made pro-rata via a declaration endorsement to extend the policy period.

Yes—typically 4 weeks for CAR and 4-12 weeks for EAR. This can be extended via endorsement for complex industrial projects.

Contractor-owned plant on site is covered up to declared value. Hired-in plant requires a specific 'Hired-in Plant' extension.

Notify the insurer within 7 days. A loss surveyor is appointed within 48 hours, and interim payments are available for repair works.

Yes, though the design defect risk is higher. We recommend LEG3 'consequential' wording for these contracts.

Usually full EAR for plant-heavy EPC (refineries, power stations) or CAR with an erection extension for civil-heavy projects.

Labour accommodation is typically covered under 'temporary works' if it is located within the project site boundary.

Standard CAR is site-only. Add a Marine + 50/50 Clause to cover imports until they arrive safely at the project site.

eSanad's partners issue stamped certificates and policy schedules naming DM as an additional interest within 24 hours.

Only with the principal's consent. Refunds are typically pro-rata minus a short-period penalty.

No—that requires a separate Workmen’s Compensation policy, which is mandatory under UAE Labour Law.

Up to AED 50M: 24 hours with a BOQ copy. Above AED 100M: 3-5 days as it may require a technical risk survey.

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